private health insurance Flashcards
(10 cards)
what is private health insurance
private health insurance is optional medicine insurance that can be taken out in addition to medicare. Users pay a premium to join a scheme.
* people can also opt for ‘extras’ cover which can cover services providing by dentist, physiotherapists and chiropractors, which are not covered by medicare.
what is not covered by private health insurance
- cover counter medicine
- cosmectic surgery
what is covered by private health insurance
- extras such as amubulance
- hospital treatment
what are advantages of private health insurance
- enables access to private hospital care
- shorter waiting times for some medical procedures, such as elective surgery
- choice of doctor while in public or private hospital
what are disadvantages of private health insurance
- costly in terms of the premiums that have to be paid
- qualifying periods apply for some conditions, such as pregnancy
- policies can be complex to understand
what are private health incentives/funding
- lifetime cover - those who take out insurance after the age of 31 pay an extra 2% on their premium for every year they are over the age of 30.
- private halth insurance rebate - based on income, some people with private health insurance are eligible for a rebate (or refund) from the federal government or average of 30%, but is income tested.
- the medicare levy surcharge - high income earners who don’t have private health insurance pay a higher premuim. this is income tested so those whith higher incomes pay a higher surcharge (the surcharge can be 1, or 1.5 %)
- age based discount - insurers jave the options of offering young people aged 18-29 a discount of up to 10 percent for hosptital cover. This discount allows for a 2% reduction in premiums for each year.
sustainability in private health insurance
PHI helps to keep the strain off the public system, contributing to overall sustainability of the health system.
access in private health insurance
private health insurance can reduce waiting times for policy holders which can access to timely treatment.
funding in private health insurance
a large portion of private health insurance is funded via the premiums individuals pay annually.
equity in private health insurance
those on lower incomes recienve more financial assistance though the private health insurance rebate.
